Bilateral trade with loss-averse agents

IF 1.2 3区经济学 Q3 ECONOMICS

Economic Theory Pub Date : 2024-07-08 DOI:10.1007/s00199-024-01591-8

Jean-Michel Benkert

引用次数: 0

Abstract

We introduce expectations-based loss aversion, which can explain the empirically well-documented endowment and attachment effect, into the classical bilateral-trade setting (Myerson and Satterthwaite in J. Econ. Theory 29:265–281, 1983). We derive optimal mechanisms for different objectives and find that relative to no loss aversion, the platform designer optimally provides agents with partial insurance in the ownership dimension and with full insurance in the money dimension. Notably, the former is achieved either by increasing or decreasing the trade frequency, depending on the distribution of types. Finally, we show that the impossibility of inducing materially efficient trade persists with loss aversion.

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与规避损失的代理人进行双边贸易

我们将基于预期的损失规避引入经典的双边贸易环境中（Myerson 和 Satterthwaite 在 J. Econ. Theory 29:265-281, 1983），它可以解释经验上充分证明的禀赋和依附效应。我们推导了不同目标的最优机制，发现相对于无损失规避，平台设计者在所有权维度上为代理人提供了部分保险，在货币维度上为代理人提供了全额保险。值得注意的是，根据类型的分布，前者可以通过增加或减少交易频率来实现。最后，我们证明了在损失规避的情况下，不可能诱发实质上有效的交易。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Economic Theory ECONOMICS-

CiteScore

2.50

自引率

23.10%

发文量

期刊介绍： The purpose of Economic Theory is to provide an outlet for research - in all areas of economics based on rigorous theoretical reasoning, and - on specific topics in mathematics which is motivated by the analysis of economic problems. Economic Theory''s scope encompasses - but is not limited to - the following fields. - classical and modern equilibrium theory - cooperative and non-cooperative game theory - macroeconomics - social choice and welfare - uncertainty and information, intertemporal economics (including dynamical systems) - public economics - international and developmental economics - financial economics, money and banking - industrial organization Economic Theory also publishes surveys if they clearly picture the basic ideas at work in some areas, the essential technical apparatus which is used and the central questions which remain open. The development of a productive dialectic between stylized facts and abstract formulations requires that economic relevance be at the forefront. Thus, correct, and innovative, mathematical analysis is not enough; it must be motivated by - and contribute to - the understanding of substantive economic problems. Officially cited as: Econ Theory